CRISIL Research has assigned IER fundamental grade of 3/5 to Indo Count Industries. The grade indicates that the company's fundamentals are 'good' relative to other listed equity securities in India. Our one-year fair value of the stock is Rs 190.

At the current market price of Rs 182 a share, valuation grade is 3/5 indicating that the current market price is aligned with our fair value. The grades are not a recommendation to buy, sell or hold the securities to which it relates (or any other securities), or a comment on the graded instrument's future market price or its suitability for a particular investor.

CRISIL Research expects Indo Count's revenues to grow at a two-year CAGR of 13% to Rs 19 billion in FY16 largely driven by 21% CAGR in the home textiles business. ''EBITDA margin is expected to expand from 12.4% in FY14 to 14.7% in FY16. Adjusted PAT is estimated to increase from Rs 1,088 million in FY14 to Rs 1,635 million in FY16. EPS is expected to increase from Rs 30.6 in FY14 to Rs 41.4 in FY16. RoE is expected to remain healthy but moderate from 44.4% in FY14 to 34.6% in FY16,'' it said.

Shares of the company declined Rs 8, or 4.4%, to trade at Rs 173.90. The total volume of shares traded was 5,565 at the BSE (11.42 a.m., Thursday).